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Home HEADLINES Nigeria appeals court ruling in $55m oil debt recovery suit involving Agip

Nigeria appeals court ruling in $55m oil debt recovery suit involving Agip

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By Onyewuchi Ojinnaka

Few hours after a Federal High  Court Lagos, Nigeria dismissed $55 million debt recovery suit filed against Nigeria Agip Oil Company Ltd, and Brasoil Services Company Nigeria Ltd over undeclared oil shipment, the Federal Government has filed a Notice of Appeal, at the Lagos Division of Appeal Court challenging the decision of High Court.

Justice Mojisola Olatoregun had Wednesday in a judgement on the suit, dismissed the Federal Government (plaintiff’s)
claim on the grounds that it failed to establish sufficient facts on a preponderance of evidence.

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In the case of Agip, the court held that the plaintiff ought to provide sufficient evidence to show that the defendant actually lifted excess 500,000 barrels of crude oil, in order to entitle it to the reliefs sought.

Similarly, in the case against Brasoil, the court also held that the burden rests on the plaintiff to prove and show requisite evidences, in pursuit of its case, adding that it failed to establish same.
On those grounds, the court dismissed the plaintiff’s suits.

But dissatisfied with the lower court’s judgment, the Federal Government, through its counsel, filed a Notice of Appeal challenging the entire courts decision on several grounds.

Some of the reasons adduced by the FG in challenging the decision is that the lower court erred in law, when it held that the plaintiff’s case fails for lack of proof on a preponderance of evidence, and held that it was not entitled to all the reliefs sought in its amended statement of claim dated April 12, 2017.

The plaintiff/appellant contends that the lower court failed to consider relevant facts put before it, and also erred in law when it held that the defendant had performed all the relevant obligation in relation to a declaration of crude oil revenue to be remitted to the FG.

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The plaintiff/appellant averred that in line with established principle of law, it is of the opinion that there must be a crucial appraisal and evaluation of all evidences brought before the court.

The FG is therefore, seeking an order of the appellate court, setting aside the decision of the lower court, by which it dismissed its suit.

No date has been fixed for hearing of the Appeal filed on Wednesday (yesterday).

The Federal Government had through its counsel Prof. Fabian Ajogwu (SAN) filed the suit in 2016, seeking to recover almost $12  billion missing crude oil revenue from some multinational oil companies.

In the suit, Federal Government (plaintiff) is claiming $55 million against Agip Oil Company in missing oil revenue, and also claiming the sum of $4.8 million against Brasoil in related circumstances.
According to the plaintiff, the sums represent shortfalls in the amount of excess crude oil lifted out of Nigeria.

TheNiche reports that the Federal government had also sued Total E&P Nig. Plc, alleging that the oil company under-declared the volume of crude oil it shipped out of the country between January 2011 and December 2014.

Government accused the oil company of short-changing it to the tune of $245 million, by allegedly shipping several barrels of crude oil out of Nigeria, without making due remittance to the government.

Similar suits are also pending against Chevron Nigeria Ltd, Chevron Petroleum Nigeria Ltd, Shell Western Supply & Trading Ltd among others.

All the suits are pending before Justice Olatoregun of the Federal High court, Lagos.


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